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northern district of alabama

In re Shea

Ruling
Credit counseling requirement could not be waived despite exigent circumstances absent evidence of efforts, and inability, to obtain,counseling.
Procedural posture

The debtor filed motion for waiver, based on exigent circumstances, of the requirement for prepetition credit counseling.

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Consumer opinion summary, case decided on January 07, 2008 , LexisNexis #0208-072

In re Rowe Cos.

Ruling
Debtor-in-possession's objection to proof of claim arising from shipments to subsidiary sustained.
Procedural posture

Debtor in possession ("DIP") objected to three proofs of claim filed by two different creditors (Creditor 1 and Creditor 2). At issue in each objection was whether the claims, which arose from each creditor's shipment of goods to an entity (subsidiary) that was wholly owned by DIP, were properly allowed against the DIP.

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Commercial opinion summary, case decided on December 14, 2007 , LexisNexis #0208-043

In re Pamaswamy De Wakar

Ruling
Debtor's spouse and children not entitled to special notices in absence of domestic support obligation.
Procedural posture

A debtor filed a petition under chapter 11, and the United States Trustee ("UST") sought an order requiring the debtor to give his wife and children the special notices required by 11 U.S.C. § 1106(c)(1)(A) and (B).

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Consumer opinion summary, case decided on December 07, 2007 , LexisNexis #0108-052

SunTrust Bank v. Hue Huu Tran (In re Hue Huu Tran)

Ruling
Stay terminated as to security interest in motor vehicle where debtor failed to timely redeem or reaffirm.
Procedural posture

A debtor filed a voluntary petition for relief under chapter 7, and a trustee was appointed to represent the bankruptcy estate. The trustee filed a report of no distribution, and after that report was filed, a bank filed a motion for relief from the automatic stay in order to enforce a security interest in an automobile the debtor owned. The debtor claimed that he was not behind in making payments on the debt he owed.

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Consumer opinion summary, case decided on November 27, 2007 , LexisNexis #0108-006

In re WCS Enters.

Ruling
Creditor not entitled to contractual claim for postpetition attorneys'fees.
Procedural posture

A corporate debtor filed a petition under chapter 11, and it objected to a claim that was filed by one of its creditors. The case was converted to one under chapter 7, and the court appointed a trustee to represent the bankruptcy estate. The trustee was substituted as the objecting party.

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Commercial opinion summary, case decided on November 20, 2007 , LexisNexis #1207-075

In re Maggard

Ruling
Mortgagee that had been paid in full could not reopen debtor's case to allow removal of state insurance dispute to bankruptcy court.
Procedural posture

A bankruptcy debtor's case was closed and the debtor brought an action in state court against her former mortgagee, alleging that insurance proceeds received by the mortgagee due to a loss by fire of a residence on the debtor's property was property of the debtor. The mortgagee moved to reopen the debtor's bankruptcy case to allow removal of the case to the bankruptcy court.

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Consumer opinion summary, case decided on November 13, 2007 , LexisNexis #1207-098

In re U.S. Airways Inc.

Ruling
Pilot's unsecured priority claim disallowed as duplicative of claim filed by Pension Benefit Guarantee Corporation in debtor's prior case.
Procedural posture

Debtor airline company filed a petition under chapter 11, and one of the debtor's employees filed an unsecured priority claim in the amount of $1,300,000. The debtor filed an objection to the claim and moved for summary judgment on its objection.

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Commercial opinion summary, case decided on October 31, 2007 , LexisNexis #1207-137

LaSalle Natl Assn v. Cordova (In re Cordova)

Ruling
Creditor would be entitled to relief from stay to foreclose on property without equity absent conversion to chapter 13 and imposition of repayment plan.
Procedural posture

Movant mortgage creditor sought relief from the automatic stay of 11 U.S.C. § 362 in respondent debtor's chapter 7 case.

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Consumer opinion summary, case decided on October 22, 2007 , LexisNexis #1107-108

In re Hailemichael

Ruling
Deferment of credit counseling requirement where debtor did not claim exigent circumstances for filing or inability to obtain counseling within five days of petition date.
Procedural posture

A debtor filed for relief under chapter 7. The debtor filed a request for deferment of the credit counseling requirement set forth in 11 U.S.C. § 109(h).

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Consumer opinion summary, case decided on October 12, 2007 , LexisNexis #1107-071

In re Jemison

Ruling
Plan approved but for any provisions calling for estate to retain more property than necessary for plan completion.
Procedural posture

Four chapter 13 cases came before the court for plan confirmation. The court, sua sponte, raised the issue of whether confirmation should be denied because a provision in each plan purported to postpone the re-vesting in the debtor of all property of the estate until the case is dismissed, converted, or closed violated 11 U.S.C. § 1325(a)(1) and (3).

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Consumer opinion summary, case decided on September 06, 2007 , LexisNexis #1007-093